BGEO Group Financial Update

-4% Jan-11 45% Weakening against US$ 40% 35% 30% 25% 20% 15% 11% 11% 10% 5% 1% 0% Armenia Russia Euro Georiga Moldova Source: Bloomberg Note: 9 November 2014 - 9 November 2015 16% 14% Annual inflation 12% 10% سمك 8% 6% 4% 2% 0% -2% May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Core (non-food, non-energy) Headline Inflation Source: GeoStat, NBG Holding company of BANK OF GEORGIA BGEO www.bgeo.com GROUP November 2015 Turkey Azerbaijan Ukraine Belarus Kazakhstan Global, regional and local factors fully affected lari in 9M15 Stronger dollar, regional economic problems and domestic expectations fed into GEL moves... ...and Georgia used less reserves to support GEL compared to peers GEL remained competitive.... 0% Inflation remained low in Georgia, compared to trading partners... ...helped by lower world commodity prices... Sep-14 Jan-15 May-15 Sep-15 Georgia Turkey 60% 41% Reserve loss, % 50% 33% 55.6% 115 REER, Jan 2013-100 NEER, Jan 2013-100 110 31% 40% 34.0% 34.6% 25% 23% 105 21% 22% 27.3% 30% 20.8% 21.3% 100 20% 9.0% 9.6% 10% 55 95 Lari' real depreciation Jan-11 Apr-11 Jul-11 Nov-11 Feb-12 May-12 Sep-12 Dec-12 Mar-13 Jul-13 Ukraine Russia Belarus Moldova Armenia Source: IMF Note: Sep-2014 to Sep-2015; Armenia's reserves exclude a US$ 500mn Eurobond issued in March 2015 Source: NBG Azerbaijan 225 World commodity prices 30% 200 ■ End-2014 25% 175 Annual inflation 8.0% 20% 150 15% 125 5.8% 10% 100 5% 75 0% Source: IMF Total Non-energy Energy Note: Commodity price indices, 2005=100 Oct-13 Jan-14 May-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 90 90 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 ...and elevated commodity prices in peers ■Latest-2015 46% Armenia Azerbaijan Georgia Turkey Kazakhstan Belarus Moldova Russia Ukraine Source: National statistics offices Note: Latest Oct 2015, as of September for Azerbaijan, Moldova, & Belarus page 65 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15

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